0.1 Name
Investment funds.

0.2 Subject Area
Balance sheets of investment funds
Money and credit market.

0.3 Responsible Authority, Office, Person, etc.
Danmarks Nationalbank, Statistics, Money, Banking and National Accounts Statistics
Cecilie Theresa Wendt, tel. +45 33 73 25 31, e-mail: ctw@nationalbanken.dk
Martin Dencker Raffnsøe, tel. +45 33 63 68 50, e-mail: mdr@nationalbanken.dk

0.4 Purpose and History
The purpose of the statistics is to analyse the assets and liabilities of investments funds with focus on their portfolios and holders of investment fund shares.

As from 2010 the statistics the frequency has been raised to monthly from having been quarterly. The increased frequency has its origin in a new Guideline from the European Central Bank (ECB) on investment funds statistics.

During the period 1st quarter 1999 to 3rd quarter 2000 the statistics was only based on reports from 90 per cent of the investment funds (measured by assets). The remaining 10 per cent were estimated on the basis of supplementary information from among others The Danish Investment Fund Association (IFB) and VP Securities (VP). As from 4th quarter 2000 all investment funds were reporting, and furthermore including more information about  their holdings of securities and holders of investment fund shares. As from 2010 the statistics contain additional detailed information on the distribution of members' assets, portfolio of the investment funds and investment characteristics.

The statistics are broken down by equity, bond and mixed funds and as from 2010 also by hedge funds. Until 2010 there was no breakdown by hedge funds so they were included in the other fund types. The grouping is determined on the basis of the published prospects for the funds and reported to Danmarks Nationalbank.

The investment funds' securities portfolios are distributed by country on the basis of the residence status of the issuers. Ownership of the investment funds' assets is likewise distributed by country of residence of the members. By residence is meant the geographical affiliation of an entity based on that entity's core economic interests – i.e. the country in which the entity conducts its principal economic activity for an extended period (more than one year). The distribution by country, including allocation to residents and non-residents, adheres to the definition of residents and non-residents in Danmarks Nationalbank's statistics Balance of payments – Financial accounts (according to the same definition of residence). A list of countries and currencies are available here. Individuals and companies domiciled in Greenland and the Faroe Islands are non-residents.

The sectorial distribution in the statistics adheres to the guidelines of ESA95 (The European System of Accounts). The statistics are distributed on the following sectors:

• MFIs: Banks and mortgage banks, other credit institutions, money-market funds and Danmarks Nationalbank.
• Other financial intermediaries: Investment funds, investment trusts, securities and derivative dealers (on own account), financial leasing companies, etc.
• Financial auxiliaries: Nasdaq OMX Copenhagen, VP Securities, securities and derivative dealers for the account of others, and similar.
• Insurance corporations and pension funds, including ATP (Danish Labour Market Supplementary Pension Fund).
• Non-financial corporations: Companies whose principal activity is in non-financial sectors and similar.
• General government: Central and local governments and social security funds.
• Households, etc.: Ordinary households, sole proprietorships and non-profit institutions serving households (associations, trade unions and charitable funds).

Investment funds' balance sheets comprise the following key items:

• Deposits, etc.: Deposits with banks, etc. and cash funds.
• Bonds, etc.: Bonds, certificates of deposit, subordinate debt certificates, money-market securities, commercial papers, mortgage deeds and similar instruments traded on financial markets.
• Shares and other equity: Shares and other types of equity interests. Holdings of shares issued by investment funds and certain other types of investment trust are stated under shares in mutual funds, however.
• Shares in mutual funds: Holdings of shares in mutual funds and other types of share issued by investment funds/trusts whose sole purpose is to invest funds in the money market, financial market or property market. The item includes shares in both account-holding and certificate-issuing investment funds and shares in investment trusts engaged solely in collective investments in negotiable securities.
• Financial derivatives: The market value of the investment funds' financial derivatives (forward contracts, futures, options, swaps, FRAs, etc.). The balance-sheet item is calculated on a gross basis so that derivatives with a positive market value on the balance-sheet date are recorded as assets, while derivatives with a negative market value are recorded as liabilities.
• Other assets: Assets that are not included in other assets, e.g. fixed assets, outstanding interest and dividend, accrued items (e.g. unsettled sale of securities) and other outstandings that cannot be attributed to the investment funds' main activity.
• Certificates issued by investment funds: Investment certificates issued by certificate-issuing investment funds, and certificates in account-holding investment funds. The item is equivalent to the assets managed by the investment funds for the members.
• Other liabilities: Liabilities that are not included in other liabilities, e.g. dividends due to members, corporation tax payable, accrued items (e.g. unsettled purchase of securities) and any debt that cannot be attributed to the investment funds' main activity.

Participants' consolidated assets can be calculated by deducting the item "Mutual fund shares issued by Danish residents" from the participants' assets (the liability item "Certificates issued by investment funds").

Balance-sheet items are normally compiled at current market prices on the last banking day of the quarter (closing prices). If market prices cannot be determined objectively, e.g. in connection with unlisted assets and liabilities, best estimate is taken as market value.

Certificates issued by investment funds and special-purpose associations are compiled at intrinsic value.

Balance-sheet items in foreign currency are converted to Danish kroner at the exchange rates listed by Danmarks Nationalbank on the last banking day of the quarter. An alternative reliable source is used for currencies for which Danmarks Nationalbank does not list an exchange rate.

Transactions such as purchase and sale of securities are likewise compiled at market value. Transactions are compiled on a net basis, i.e. net purchase on the asset side and net sale on the liabilities side. Transactions are registered on the trading day. Drawn amounts or repayments for e.g. bonds are likewise classed as transactions. The statistics do not include fees, commission, and similar payments for services related to the transaction. For securities except shares the transactions are compiled excluding trading/coupon interest. New certificates are registered at issue price/market value. This entails that acquisition of bonus shares with an issue price/market value of 0 is not included as a transaction. All currency amounts are converted to Danish kroner at the exchange rate prevailing on the trading day.

Accounts denominated in the currencies of the euro member states and any XEU denominated outstandings are placed under euro.

2.1 Reference Period
The statistics are compiled on a monthly basis.

2.2 Date of Publication
The statistics are published on the 21st banking day after the reference period. In quarter-months a short comment on the figures is published, but data is published on a monthly basis.

2.3 Punctuality
The statistics are usually published without delay in relation to the scheduled date.

2.4 Frequency
The statistics are published every month.

3 Accuracy

3.1 Overall Accuracy
The statistics cover the population 100 per cent, hence the degree of reliability is primarily related to the quality of the individual reporting from the respondents and the information on securities in Danmarks Nationalbank's securities database. The overall reliability is estimated to be high.

3.2 Sources of Inaccuracy
As the statistics cover the population 100 per cent the potential sources of inaccuracy are reduced to include the reporting by the respondents and Danmarks Nationalbank's securities database. This uncertainty is primarily related to misunderstandings of definitions and errors in the reporting. Misunderstandings of definitions are rare due to few changes in the group of respondents, while the probability of reporting errors always will exist. There is, however, a strong probability that such errors are discovered in the internal data checks. Moreover Danmarks Nationalbank performs monthly estimations  which naturally have a certain degree of uncertainty.

3.3 Measures on Accuracy
There are no calculations of uncertainty.

4 Comparability

4.1 Comparability over Time
As mentioned above, from 1st quarter 1999 to 3rd quarter 2000 the statistics were based on reports from 90 per cent of the investment funds (measured on assets). The remaining 10 per cent is for this period estimated on the basis of supplementary information from e.g. the IFB and the VP. In the transition to the new statistics at end-2000 focus was also increased on the investment funds' portfolios and the owners of the investment funds.

4.2 Comparability with other Statistics
The market statistics of the IFB are approximately comparable with the reservation that the populations are not 100 per cent identical. In the IFB statistics the grouping of investors by institutional and retail correspond to respectively the sector "Insurance corporations and pension funds", and "All sectors excluding insurance corporations and pension funds", in the statistics.

4.3 Coherence between Provisional and Final Statistics
The statistics are normally revised 2 reference periods back when the present month is published, cf. also Danmarks Nationalbank's revision policy for financial statistics and the appurtenant revision cycle.

5 Accessibility

5.1 Forms of Dissemination
Published monthly via: